Thursday, May 29, 2008

IRA Incentive

The U.S. House of Representatives on Wednesday passed a bill that would renew a tax break that encourages older Americans to give money from their individual retirement accounts to nonprofit causes. Until December 31 of last year, donors age 70½ or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money. Members of Congress have been working to revive the tax break, and the House on Wednesday approved legislation that would extend the break for one year, from January 1, 2008, through December 31.